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How does the economy adjust if the economy is initially at point Omega . Inventories have risen above their desired level, and firms increase production.
How does the economy adjust if the economy is initially at point
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.\ Inventories have risen above their desired level, and firms increase production. Inventories have risen above their desired level, and firms decrease production. Inventories have fallen below their desired level, and firms increase production. Inventories have fallen below their desired level, and firms decrease production.
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